RETAIL SALES FALL UNEXPECTEDLY ANALYSTS SAY THE DECLINE PROVES CONSUMERS HAVE ENDED THEIR SPENDING SPREE.(BUSINESS)

Byline: JOHN M. BERRY Washington Post

WASHINGTON Retail sales fell 0.5 percent last month to a level only slightly higher than November's, the Commerce Department reported Tuesday.

Many analysts said the unexpected decline was evidence that consumers have ended the spending spree that was a major factor in last year's strong 4 percent economic growth rate.

``Clearly the retail sales report is a very powerful signal that economic activity has slowed in 1995,'' said Bruce Steinberg, macroeconomics manager at Merrill Lynch & Co. in New York City. ``Consumers are really taking a breather here. The pace of their spending was excessive late last year …